Help with VAT please????

right I make gift baskets/sets %26amp; am registered for VAT, I have got the hang of most of it. But I am not sure about the rates for vairous items that goes in,,, example

Pencils, Bath Bomb, Glitter Hair Spray, Body Breeze, Sweets, Make-Up ETC......

Is the a default list anywhere that will make it easy for me.

thanks

Help with VAT please????

Try this link:

http://www.businesslink.gov.uk/bdotg/act...

Help with VAT please????

I would contact your local HMRC office - they are pretty helpful these days.

If your basket is sold as a complete set they may view it as one product.

You might want to try to register for the 'flat rate scheme' - this makes it easier to calculate the VAT for small traders like yourself. You agree a flat % with HMRC and then simply apply that % to your total sales and that is your VAT bill. It saves you faffing around with output tax and input tax. if you have an accountant ask them about this. If not, book an appointment with the HMRC and ask them about it. Its a really good idea - saves heaps of time.

Help with VAT please????

it does not matter what goes in - the whole lot is at 17.5% as the basket is deemed a single item.

what is your turnover? you maybe able to deregister, charge the same prices and keep the vat for youself

Using a taxwise accountant like me can save you more than you pay in fees

Help with VAT please????

Try this link

http://customs.hmrc.gov.uk/channelsPorta...

Look at section 29 which tells you in broad terms what products do not have VAT charged at 17.5%. If your products are not listed in these exceptions then VAT is charged at 17.5%.

Your products all seem like they attract VAT @ 17.5%.

Whatever you do, don't engage Richie as your accountant - his repsonse is wrong. If your baskets contain a mixture of products at different VAT rates, then you can apportion VAT accordingly and so the % rate on the final end product will be non-standard. However, I believe you need to get agreement from HMRC to do this.